In the foothills of Mount Mulanje, in a remote region near Mozambique’s border, lies a cluster of villages collectively known as Bondo. Despite the prevalent poverty, lack of transportation, meager resources, and absence of electricity, the people in this area have found an unexpected source of happiness—Bitcoin mining.
Bitcoin Brought Electricity to Bondo
According to UnHerd, Bondo has welcomed the arrival of electricity. The region boasts abundant rainfall, and to harness this resource, three turbines have been installed in a micro-hydro system. Inside a concrete pump shed, 32 computers are actively engaged in Bitcoin mining.
Despite the common criticism of cryptocurrency mining for its electricity consumption, the report contends that this initiative challenges the narrative. Instead, it utilizes Bitcoin mining to finance energy projects in parts of Africa that are economically deprived or too remote to justify connection to traditional power grids. The mining operation efficiently taps into the surplus energy generated by these renewable plants, bringing about a “life-changing” impact for the 1,800 homes connected to a mini-grid.
In several ways, it has brought about significant changes.
Initially, individuals now have access to electricity, a luxury not common in many parts of the country. This newfound resource enables them to utilize stoves for cooking, refrigerators for food and medicine storage, watch television, and keeps lights on for children to pursue their studies, offering them an opportunity to continue their education rather than dropping out of school.
Furthermore, villagers can now engage in the production of food and beverages to sell at local markets.
The senior chief conveyed to the reporter their disbelief at witnessing the provision of energy to the villages. Not only residences, but schools, maize mills, small businesses, shops, and churches are also linked to the electrical grid.
“When you explore Bondo, you witness content and joyful people – all thanks to electricity.”
These developments contribute significantly to fostering economic growth within the local community.
People Learned How to ‘Catch Their Own Fish’
One crucial but frequently overlooked reality is the dependence of many impoverished communities on foreign aid.
The author highlighted Malawi as “a compelling case study in the shortcomings of aid.” For instance, countries like Great Britain would provide fish to Malawi but failed to teach them how to fish independently.
However, the report emphasized,
“[Bitcoin mining has liberated] the community from dependency on foreign assistance for survival.”
Erik Hersman, CEO of Gridless, remarked that “Bitcoin has the potential to prevent Bondo from turning into the kind of abandoned project often seen across Africa, initiated by aid groups and subsequently left unused.”
The Bondo power plants, constructed by the Mount Mulanje Conservation Trust, a local organization dedicated to preserving the region’s distinctive biodiversity, were initially funded by aid and development agencies.
Nonetheless, as the report indicated,
“Now Bitcoin is responsible for covering the operational expenses.”
Finally, Malawi illustrates another motivation behind the growing inclination toward bitcoin in Africa. People are seeking a means to safeguard their finances and shield them from the volatility of local currencies.
